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Abstract

This paper evaluates the economic and the financial viability of implementing private farm management centers (FMC) in El Salvador. In doing so, an ex ante cost-benefit analysis is performed. The results of this analysis suggest that a combination of better farm prices (paid and received), reallocation of resources, and crop diversification that would be promoted by a FMC can lead to an increase in farm level profits that is sufficient to cover the operation of the center and to still generate net gains in household income.

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